The subsidy arrives via the fixed charge that water charges power for the "falling water" that generates energy on its way to irrigation canals. Why the fixed charge?
IID Director Jim Hanks said the fixed falling water charge was adopted to allow the finance department to better plan its funds for the year, since the adjustable charge varied.In other words, IID accountants are lazy.
I'd LOVE to have a fixed gas price, so I could "plan my funds" for the year, but that's not going to happen. It can at IID, because it runs its co-mingled businesses like a bureaucracy, not two businesses that have real costs that vary.
This seems a good time to recall that I've suggested that IID energy and water be split into two separate businesses, and they should be.
Bottom Line: Split IID in two, and watch energy and water management efficiency rise.